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September 9, 2022
2022-1357

Ireland publishes updated guidance on tax deductibility of Digital Services Taxes

  • Ireland has updated its list of countries to which the guidance on tax deductibility of Digital Services Taxes applies.
  • Austria, Kenya and Spain have been added to the list.

The Irish Revenue Commissioners (Irish Revenue) issued guidance on 5 August 2022 (see EY Global Tax Alert) concerning the deductibility of Digital Services Taxes (DSTs) in computing income of that trade for Irish corporation tax purposes.

Irish Revenue has updated that guidance through the addition of three additional DSTs to the list to which the guidance applies.

Where certain DSTs have been incurred wholly and exclusively for the purposes of a trade, the guidance notes that the DST should be deductible in computing income of that trade for Irish corporation tax purposes.

The complete list of countries to which the guidance now applies to is:

  1. Austria's Digital Services Tax (updated)
  2. France's Digital Services Tax
  3. Italy's Digital Services Tax
  4. Kenya's Digital Services Tax (updated)
  5. Spain's Digital Services Tax (updated)
  6. Turkey's Digital Services Tax
  7. United Kingdom's Digital Services Tax
  8. India's Equalisation Levy

This list may be updated as required in the future.

Taxpayers can make enquiries on the deductibility for Irish tax purposes of DSTs in other jurisdictions through existing processes operated by Irish Revenue's Technical Services.

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CONTACTS

For additional information with respect to this Alert, please contact the following:

Ernst & Young (Ireland), Dublin

Ernst & Young (Ireland), Financial Services, Dublin

Ernst & Young (Ireland), Cork

Ernst & Young (Ireland), Limerick

Ernst & Young (Ireland), Waterford

Ernst & Young (Ireland), Galway

Ernst & Young LLP (United States), Irish Tax Desk, New York

Ernst & Young LLP (United States), Irish Tax Desk, San Jose

Ernst & Young LLP (United States), FSO Irish Tax Desk, New York

 

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